India’s second-largest telecom operator, Bharti Airtel, has announced a tariff hike following a similar move by Reliance Jio. Airtel will increase its plans by 10-21 percent, effective July 3. The company described the hike as ‘very modest,’ amounting to less than 70 paise per day on entry-level plans.
Airtel announces revised mobile tariffs. These prices apply to all circles, including Bharti Hexacom Ltd. Circles. The new tariffs for all Airtel plans will be available on https://t.co/jASVh3skYf. in starting July 3rd, 2024. pic.twitter.com/3GL5vTF1xr
— ANI (@ANI) June 28, 2024
“Airtel will revise its mobile tariffs from July 3, 2024. We have ensured that there is a very modest price increase (less than 70p per day) on the entry-level plans to avoid burdening budget-conscious consumers,” Bharti Airtel stated in a regulatory filing.
In the unlimited voice plans, Airtel has raised the tariff from Rs 179 to Rs 199, from Rs 455 to Rs 599, and from Rs 1,799 to Rs 1,999. The company has emphasized that the mobile Average Revenue per User (ARPU) needs to be above Rs 300 to sustain a financially healthy business model for telcos in India.
On June 28, market leader Reliance Jio announced a 12-25 percent rise in tariffs for all mobile plans across prepaid and postpaid segments, aiming to boost its monthly ARPU, which had stagnated at Rs 181.7 for three quarters until March 2024.
Additionally, Jio has restricted access to unlimited free 5G services. The tariff hikes come immediately after the spectrum auction, aligning with sector experts’ expectations.
Historically, India’s telecom ARPU has been among the lowest globally. In the latest telecom spectrum auction, which concluded on June 27, Bharti Airtel topped the buyers’ list with bids worth Rs 6,856 crore for 97 MHz spectrum. Market leader Reliance Jio acquired 14.4 MHz spectrum for Rs 973 crore, while Vodafone Idea (Vi) purchased 50 MHz of spectrum at a total cost of Rs 3,510 crore.